Home Affordable Refinance Program (HARP) – Understanding the Basics
If you’re not behind on your mortgage payments but have been unable to get traditional refinancing because the value of your home has declined, you may be eligible to refinance through the Home Affordable Refinance Program (HARP).
WHAT IS A HARP LOAN?
HARP is designed to help you get a new, more affordable, more stable mortgage. HARP refinance loans require a loan application and underwriting process, and refinance fees will apply.
HOW CAN I QUALIFY FOR A HARP LOAN?
- The mortgage must be owned or guaranteed by Freddie Mac or Fannie Mae.
- The mortgage must have been sold to Fannie Mae or Freddie Mac on or before May 31, 2009.
- The mortgage cannot have been refinanced under HARP previously unless it is a Fannie Mae loan that was refinanced under HARP from March-May, 2009.
- The current loan-to-value (LTV) ratio must be greater than 80%.
- The borrower must be current on the mortgage at the time of the refinance, with a good payment history in the past 12 months.
WHAT ARE THE UNIQUE BENEFITS OF HARP?
Some of the great features of this type of refinance are:
- Generally lower closing costs
- 10/15/20/25/30 year fixed rate options
- Excellent opportunity for “underwater” mortgages
- Generally more lenient underwriting
- No appraisal required in certain situations
- Receive the same low rates that a conventional loan refinance would be entitled to
- No mortgage insurance, even if you owe more than the house is worth
- With a Fannie loan, all your closing costs can be included in the mortgage
ARE YOU INTERESTED IN A HARP LOAN?
Without the right assistance, qualifying for a HARP loan can be very difficult and overwhelming. It’s always best to discuss your options with a lender you can trust like Metroplex Mortgage Services. Our financing expertise has helped thousands of homebuyers become happy homeowners and we can help you too!